US posts narrower trade deficit

The US unexpectedly posted a lower trade deficit for the month of May, a news that may have a positive impact on the economy’s Q2 GDP. The deficit of $26 billion is the lowest in almost a decade, pushed by higher exports and lower imports of crude and auto parts as the commodity has seen a huge spike from its crisis-lows and the bankruptcy of Chrysler and General Motors finally happened. The gap was expected to increase to $30 billion, from $29.2 billion, which was initially reported in April.

From Bloomberg:

Exports rose 1.6 percent, the biggest increase since July 2008, to $123.3 billion, as sales of petroleum products, chemicals and industrial machinery increased.

Imports fell 0.6 percent to $149.3 billion after decreasing the prior month. The import figures were held down by a decline in purchases of foreign crude oil to $12.9 billion from $13.8 billion, reflecting lower demand for petroleum even as prices rose.